Understanding Enterprise Resource Planning System and E-commerce

This article provides a detailed understanding of Enterprise Resource Planning (ERP) system and E-commerce. It discusses the transaction cycles, financial reporting system, management reporting system, risks and security protocols in E-commerce, and risks associated with computer-based/ERP systems.

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Executive summary
Throughout the years the quantities of organizations contending in the market have
developed. This has made it trying for any association to endure and have an
aggressive edge contrasted with different organizations. For better generation rates,
numerous organizations have catered themselves with receiving new systems and
innovation to play out their exchanges.
Prior to adopting new procedures, it is important for the concerned association to have a
superior understanding of what they are about. One of these innovations incorporates
PC based frameworks, for example, the Enterprise Resource Planning System. The
article is focused on guaranteeing that it will depict the detail involved in this framework.
Different advances that have been talked about incorporate E-trade; the article will
control the prepared to see how E-business functions.
It is likewise important that the difficulties related to these approaches be tended to.
From the article, the difficulties have been tended to and the conventions to relieve the
outcomes related to them. In the wake of experiencing this article, the researcher will
likewise have a comprehension of the exchange cycles in Business Accounting.

Contents
Introduction........................................................................................................................3
Transaction cycles.............................................................................................................3
Financial reporting system.................................................................................................6
Management reporting system..........................................................................................7
E-commerce.......................................................................................................................8
Risk of e-commerce...........................................................................................................9
Security protocols in e-commerce.....................................................................................9
Risks associated with computer-based/ ERP systems...................................................10
Role of ethics and other internal control processes........................................................11
Bell studio UML diagrams................................................................................................12
Weakness From system..................................................................................................15
Conclusion.......................................................................................................................16
Reference........................................................................................................................17

Introduction
The report is targeted at proving a superior appreciation of the trade issue factor. This
article calls attention to the importance of E-trade, examining the procedures and
furthermore the kinds of E-business that are worked out. Furthermore, it likewise talks
about the inadequacies that are achieved by deploying E-trade (Sumner, 2018.). The
security conventions likewise actualized to lessen the frequency of digital assaults have
additionally been highlighted.
The article additionally examines the different sorts of exchange forms. The business
forms in every exchange cycle have been expressed in this way giving a superior
understanding. The article likewise traces the presentation of the PC based framework
in business conditions. The difficulties that accompany these frameworks have
additionally been expressed with incredible reference to the Enterprise Resource
Planning (ERP) System. The figures in this article demonstrate the UML outline for Bell
Studios the association for explicit business procedures to be finished.
Transaction cycles
In trade bookkeeping, exchange cycles are a gathering of business forms that
cooperate to accomplish a particular assignment (Chorafas, 2016). Many of the
business procedures can be amassed to capacity, for example, installment of the
association staff, clearance of items, installment of loan specialists and installment of
the provider of the crude materials. The kind of exchange cycles incorporate.
1. The Payroll Cycle
The finance cycle is an accumulation of the considerable number of procedures
associated with dealing with the wages and pay rates of the workers inside an
association. The general procedures that are concerned are as follow:
 Collecting the data of the time consumed by every worker.
 Operating advantages and reasoning dependent on the worker time
 Eventually, operating a reasonable circulation of the payments as well as wages.

While a few organizations may depend on redistributing the finance handling
framework, others have just introduced frameworks that play out the above-expressed
procedures (Payroll Software Systems). The procedures associated with this exchange
cycle may appear to be anything but difficult to perform however need a specific kind of
aptitude included. The dimensions of evaluation additionally need the contribution of a
few individual or bodies.
2. Purchasing Cycle
This transaction cycle includes various business forms that are associated with
administration or item exchanges among an association and its sellers, where receipt
forms are carried out later amid the buying cycle. One of the trade forms associated
with the Purchase request that is dealt with by the acquisition section.
The buy request is set up to shape the solicitation served structure buying section using
Material query forms. The structure is organized and contains data on the kind of
merchandise with their separate amounts. The chief of the association needs to
approve the data in the Material Query Form and confirm so as to encourage the
execution of succeeding procedures.
When the acquiring request has been handled by the merchant, products requested are
gotten. This procedure must be recorded, and a receipt served; this is carried out by the
buying office. The receipt served by the merchant is utilized in creating the bill of unpaid
acquiring. The client utilizes the receipt to direct them on the settlement to the
merchant.
On account of harmed merchandise or unacceptable great, the client would then be
able to restore the products to the seller. The following are the normal trade forms
associated with this exchange cycle:
 Querying of items
 Carrying out a quotation on the queried things
 Buying request
 Accepting the items

 Installment (return of buys in the event of disappointment)

3. Sales Cycle
The sale cycle includes a few business procedures that a person or an institution take
so as to close another customer. These procedures are as follows:
 Understanding the item - at this phase, the sales rep must have an unmistakable
comprehension of how the item will influence its end customer.
 Searching - the deal individual needs to recognize the reasonable market from
which the client will be exceptionally keen on the item
 Breaking down client needs-this includes knowing the prerequisite the client
might need to be fulfilled by the item.
 Encounter - the business people need to set up an introduction of the item.
 Countering client dismissals - the deal's individual must have a reason that will
deal with any resistance from the client concerning the buy of the item
 Making it happen
 Directing subsequent meet-ups of the client.
The diagram below shows the order of the above processes

4. Financing Cycle
It includes mapping the monetary exercises on a chart to delineate the ascent and fall in
financial exercises. Breaking down the data got from the charts help the association in
understanding its monetary movements.
Financial reporting system
A money related revealing framework is a useful department that is in charge of
conveying budgetary data to the concerned gatherings in an association. The data that
is given is utilized to operate different procedures in an organization incorporating
deciding (Anaya, Dulaimi, and Abdallah, 2015). The data given by the framework, for
the most part, incorporates an outline of all the money related exchange that has been
operated over a specific time allotment; as a rule for each year.
For the framework to be compelling, the framework must almost certainly record all the
money related exchanges information that have been operated with reference with their
comparing assignments. From the information, the framework ought to have the option
to bridge the information to create data that is later spoken to the client; this may be in
structure if diagrams and charts.
This framework is utilized to control the adequacy and the proficiency of the
organization for the most part, subsequently assisting in playing out specific procedures
and with what size. The following is the progression of information inside the budgetary
reporting framework:
 Information from the exchange is gotten
 The information is preserved in the prime record entry
 Synopsis structure the prime book are exchanged and noted on the record
accounts
 Adjusting of the record books is done, and the preliminary equalization is
determined
 The data from the preliminary parity are posted on the fiscal summaries

Management reporting system
An administration framework is a formalized framework that aids in strategy or
procedures associated with the documentation to define sensible arrangements,
objectives, and goal in an association (Mettler, and Winter, 2016). The center factor of
having a quality administration recording framework to support the people or
organization to satisfy the necessities of its customers or of the workers along these
lines improving the adequacy and effectiveness.
The following are various duties done by Administration Reporting Structure:
 Diminishing the expense of creation
 Advancing the business forms
 Streamlining on assets
 Advancing collaboration among staff
The advantages of a quality administration revealing framework to the organization are
various; this incorporates the way that the client's and worker necessity will be met.
What's more, it will encourage the organization operating inside its lawful imperatives
and aid the association to develop.
E-commerce
It is likewise alluded to as electronic trade or web business which includes the
purchasing and selling of products and ventures over the web. It additionally extends to
the operating of a business exchange over an electronic framework (Sun, Strang, and
Firmin, 2017.). It is not the same as e-business since online business is just limited to
the exchange of merchandise and enterprises.
The introduction of online business started August yet throughout the years it has
developed drastically. This has empowered purchasers and vender to play out their
exchanges through the web. This method has been received by the two specialists and
furthermore bigger association to pitch their products and enterprises to general society
(Ogiela, 2015). Web-based business is comprised of different sorts depending on the

exchange between the merchant and the purchaser of the item, the significant four
qualifications include:
1. B2C is a business pitching its products or administrations to a shopper (B2B)
Business to Business- business selling or providing its services to another
business
2. Client to Client – one customer offering or rendering administration to another
shopper.
3. C2B- client offering items to an enterprise
Below are the operations which are concerned in e-trade:
 Retailing-offering of the merchandise straightforwardly to the client without
including go-between bodies/people
 Discount selling great mass amounts
 Outsourcing items are sold to the purchaser and dispatched to them
 Crowdfunding – this is the point at which a gathering of purchaser brings
assets up in request to purchase a decent from the market
 Membership recursive purchasing of a decent or administration until a point
where the buyer needs the item
 Computerized items this is buying advanced merchandise, for example,
sanctuaries, books, and even program permit
 Service - this is the acquiring of administration on the web, where an
individual offers his/her ability in return for remuneration or evaluation
Risk of e-commerce
Below are the challenges that are faced in the e-trade:
1. Operating a business on the web, or through a computerized framework open
up the danger of being an unfortunate casualty to digital security
2. Online business forms have a major dependence on the web. In situations
where there is an issue from the Internet Service Provider, the trade progress
stop. This will prompt the loss of profit and even clients.

3. Computerized materials exchanged over the computerized framework can be
duplicated and get redistributes by different clients. This leads to material
problems that are hard to determine and forestall
4. For some situation, the business forms engaged with E-trade cause high
assessments. This debilitates shopper since it prompts overpricing of the
merchandise or administrations.
5. The web-based business likewise faces opposition from the customer. For
organizations that do not have a physical structure related with the
organization face doubt from the purchaser.
Security protocols in e-commerce
The effect brought about by digital assault on web-based business costs the association
and the client as well as devastates the notoriety of the firm (Tamm et al., 2015). The
security conventions that can be executed include:
Setting up firewalls- by introducing a firewall on your site or business application, you
will avert the digital aggressor from misusing the vulnerabilities in the framework.
Setting up firewalls-by introducing a firewall on your site or business application, you will
avert the digital aggressor from misusing the vulnerabilities in the framework.
Actualizing access controls-by executing verification and approval conventions will
guarantee that authentic client gets to the network of the structure. The utilization of the
two-factor validation has demonstrated to build the dimensions of security on a
framework.
Information encryption-this is the way toward changing over plain content to figure
content. This procedure hinders aggressors from understanding the data moving
through a framework. The genuine client of the framework can just access and
comprehend the message using mystery private code and calculations.

Risks associated with computer-based/ ERP systems
Throughout the year business procedures have advanced to actualizing PC
frameworks, the most widely recognized being the execution of the ERP framework
(Unger, Spínola, and de Paula Pessôa, 2018). The presentation of this framework has
changed the business procedures to be increasingly compelling and productive.
Because of the way that this framework has various favorable circumstances, the
weakness or hazard related to this framework has been ignored (Szabó, and Öri, 2017).
The following are a couple of the hazard that is related to the usage of such
frameworks:
1. Failure to redesign the business processes
The vast majority of the association chooses to update the PC based frameworks to
meet their authoritative objectives; this is opposite and incorrect. For the framework to
be increasingly compelling, it is vital for the business procedures to be re-built so as to
suit the framework. This procedure is hard to actualize since it's difficult for the whole
association to update its typical business procedures.
2. Lack of adequate support from top management
It is about difficult to perform business procedures without the help of top administration.
All together for the goals of the firm to be understood the top administration needs to
assume its job as the supporters.
The framework will undoubtedly come up short if the individuals from the top
administration additionally need to be the ones operating the framework. To guarantee
the greatest utilization of the framework, the job of activity ought to be left for the duty
worker.
3. Lack of training and hiring of skilled personnel
The procedures of actualizing a PC based framework into a firm likewise include the
preparation of worker and client. A portion of the organizations may neglect to subsidize
this procedure accordingly prompting the underutilization of these frameworks.

The association ought to be prepared to instruct its staff and client about the framework,
in some different cases, it is significant for a framework administrator to be utilized so as
to control the framework. This will, thusly, lead to the ideal utilization of the framework.
4. Lack of proper infrastructure
All together for a framework to work, it must be put in an appropriate situation. This
includes things, for example, successful systems and equipment gear.
The dangers related with these PC based frameworks are various, and so as to counter
them, there is a need to set up conventions that will guarantee these difficulties are
decreased or dodged. By doing this, the framework will bring improvement is an
association.
Role of ethics and other internal control processes
It is vital that every association has an ethic and administration framework that will
guarantee responsibility, this framework will anticipate quacks (Alghazi, Li, Shen, and
Fosso Wamba, 2017). Likewise, it will go about as a framework for distinguishing and
settling issues that bargain the general execution of the association. The following is the
major significance of this framework:
 Capacities are carried out successfully and effectively
 Reports, for example, monetary and the board results are dependable
 Business procedures are directed consistency with the laws of the country.
Inside control is additionally essential for the correct working of an association; they
include:
The management condition which directs the method of the association, this
incorporates factors, for example, moral qualities, the board logic, and fitness of the
association.
Challenge evaluation includes distinguishing and counteracting the conceivable problem
that an association may experience

Control exercises, for example, creating principles, guidelines, and arrangements that
oversee business forms.
Checking procedures that guarantee activities embraced by the association are inside
the sketched out approaches and objectives.
Social event and appropriate scattering of data, this is to encourage comprehension of
business forms among the workers.
Bell studio UML diagrams
Data flow diagram of purchases and cash disbursements systems
Fig 1(Appelbaum et al.,2009)
Data flow diagram of payroll system

System flowchart of purchases system
System flowchart of cash disbursements system

System flowchart of payroll system
Weakness From the system
From the above framework figure, there are shortcomings that may trigger a negative
effect on the advancement of the organization (Bhattacharya, P., 2018). The following

are the framework shortcoming and their relating effect to the working of the
organization.
Purchase system
 At the buying framework, the dependence on the buying agent to start the
procedure can be dangerous in the event that they miss distinguishing the low
amounts in stock.
 The framework depends on the stock dimension being exceptionally low, this
may cause an issue when the merchant neglects to supply great in time. For this
situation, the business will need supplies to maintain its trade forms.
 The duplicates are sent physically to the merchant and the acquiring division,
these depend on the agent and may cause a deferral if the representative does
not do it in time; this will likewise prompt postponement in the supply of material.
Also, the postponement in accommodation of the accepting report may cause a
deferral in the presentation of the Cash payment exercises.
Cash Disbursement system
The money office framework is over-dependent on the money payment representative
to play out most of the recording. Because of the serious work gave to his/her,
documents might be lost amid the way toward recording (Sun, Strang, and Firmin,
2017). This will cause lost essential data.
Furthermore, at the money payment framework, the update of the vital record is done
physically by the representative, this is a framework shortcoming since the agent can
enter mistaken figure, therefore, rendering miss-driving data. The update ought to be
computerized to look after uprightness.
Payroll system
The shortcoming knowledge in the finance framework is that the contribution of
information by workers is manual. This may prompt wrong information contribution to
the situations where a worker tries to be paid more than their working hours ( Riku, and
Setyohadi, 2017). Furthermore, the audit done by the manager prompts wastage of
time as an important asset to the organization.
The different shortcoming in this framework is that the Accounts Payable Clerk needs to
carry out exercises physically such are composing the vouchers and checking on the

finance register, this dependence on the agent may cause a blunder if the assistant
neglects to be careful.
Conclusion
From the above report, a complete comprehension of the different business process
associated with the exchange cycle has been clarified. This has expanded learning in
the field of business bookkeeping. From the report, present day advancements, for
example, E-trade and PC based have been depicted. They have been disclosed in
connection to their invaluable and the difficulties related to them. Potential estimates
that can be utilized to sidestep the deficiency have been expressed; these measures
are prescribed to any organization or individual in order to improve the security of their
frameworks.
The charts additionally have spoken to diagrammatically capacities and information
stream at the Bell Studios for explicit capacities to be executed. From the chart, the
difficulties looked by the present Bell Studio framework have been plot concerning their
impact on the organization.

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